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Will Hopewood Park Hospital lead to a Rental Boom in Ryhope?

I bumped into one of our landlords at last night's Agents Property Auction (more on the Auction next week...) and we got talking about the new 137 bed Hopewood Park hospital in Ryhope which is due to open in the summer of 2014

I bumped into one of our landlords at last night’s Agents Property Auction (more on the Auction next week…) and we got talking about the new 137 bed Hopewood Park hospital in Ryhope which is due to open in the summer of 2014

She was particularly interested in this as she owns a gorgeous 6 bedroom detached house in the exclusive Hopton Drive development opposite – we’ve previously rented this for her out on a long term company let and she wanted my opinion on whether the new hospital would mean there may be more demand from senior medical staff such as consultants

Given Hopewood Park is due to be a teaching hospital we discussed that this may have an impact not only at the top end of the market but across the nearby rental market as a whole as staff members may be seconded there on placement, typically for 12 months at a time

Whilst we would never suggest a 6 bed executive family home would stack up as an investment purchase, owners who may already have such a property may find that there is an increase in rental demand as a result of the Hospital opening

The nearby Beechbrooke development, with its mix of modern apartments and family homes may be of more interest to investors - the 2 bedroom apartments typically achieve £495pcm and based on the most recent sale (£60,000 in Nov 2013) would return 9.9% Gross Yield – there are a couple of flats on the market for sale at a higher price (the lowest being £89,000) which would return 6.6% Gross Yield

These apartments would provide a good 'low maintenance' investment that may suit a first time investor

Three bedroom family homes on the Beechbrooke development start at £160,000 and historically rent at £595pcm, which would return 4.5% Gross Yield – clearly to make financial sense it would require hard negotiation on the sale price as even a rent increase (due to greater demand) up to £650pcm would only increase Gross Yields to 4.8%

Moving a little further afield, Ryhope also has a number of older style terraced or semi-detached properties that will be popular with Key Workers and may make better investments – a good standard 2 or 3 bedroom property will achieve £450 - £495pcm and based on asking prices of around £65,000 - £75,000 they can return Gross Yields of between 7.5 - 8.5%

If you’d like to discuss Buy to Let investment properties in Ryhope or elsewhere in Sunderland please call us on 0191 567 8577 or email neil.whitfield@belvoirlettings.com

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